Latvijas Finieris 2022 performance assessment
In 2022, the turnover of Latvijas Finieris Group reached 350 million euro, which is 36% higher than the previous year, while EBITDA increased by 54% to 55.5 million euro. This demonstrates the ability of the team to react quickly and flexibly to the extreme uncertainty in the energy sector, resource supply chains and timber product markets caused by the war in Ukraine initiated by Russia and Belarus. Although some stability in supply chains has now been achieved, uncertainty remains high, therefore the ability to balance sourcing opportunities with market demand will remain a key condition for competitiveness in the foreseeable future. Latvijas Finieris exports most of its birch plywood products to countries in the European Economic Area, with a focus on industries where birch plywood is essential due to its unique physical and mechanical properties.
In 2022, the companies of Latvijas Finieris Group in Europe and elsewhere in the world provided employment to an average of 2,362 people per month, 2,066 of whom worked in the Group's Latvian companies, where an average of 10,344 euro per employee per year was paid in labour taxes (social security contributions and personal income tax). Last year, the Group paid a total of 35.3 million euro in taxes, of which 24 million euro were paid in Latvia.
In order to strengthen its leading position in the European birch plywood market and to achieve the goals set out in the company's development strategy, the Group plans to invest more than 200 million euro in the coming years in its development. The most important investment projects, which were launched last year, are the third stage of the development of RSEZ SIA "Verems" in Rēzekne and a new synthetic resin plant in Riga, which is being built as part of the international consortium project VIOBOND. Smaller but equally important investments for the overall development of the Group are planned for the veneer plant in Kuldīga, the nursery Zābaki and machinery unit Iekārtu rūpnīca, while process automation and digitalisation are taking place in each of the company's business units.
It should be noted that this year the support programme of Latvijas Finieris for Ukraine, which is equivalent to approximately 100 euro per month per employee of the Group, will continue. Since the brutal war started by Russia and Belarus on 24 February 2022, the Group's support to Ukraine as of May of this year has totalled 3.4 million euro.